
When searching for insurance for your establishment, compare liquor liability insurance policies to find one that matches your needs. Insurance companies also allow customizations to help you protect your business from risks and lawsuits. Since needs change over time, insurance companies give you the ability to adjust your insurance for future needs. Here are four tips for choosing liquor liability policies:
Compare Policies
Insurance policies vary based on multiple factors, including hours of operation and how much alcohol you serve. If your business serves alcohol late at night, look for liquor liability insurance covering late-hour incidents. A standard policy may only cover damages until a specific time. If you serve specialty liquor or high volumes of alcohol, choose policies with higher limits to cover the unique risks you may face. This will be useful if you have inventory damage or theft. Find out if the insurance policy covers your business during private parties and other hosted events. Comparing policies allows you to purchase adequate coverage for your risks and business needs.
Review Inclusions and Exclusions
Inclusions are all the risks your insurance provider will cover in case of an incident. Standard liquor liability policies cover accidents caused by intoxicated customers, such as property damage or fighting. Some policies cover over-serving alcohol to a visibly inebriated patron, which could lead to lawsuits.
Exclusions are the risks your policy doesn’t cover. Insurance providers usually exclude incidents unrelated to liquor service, intentional acts, and violations of liquor laws. Some policies also exclude underage drinking and employee consumption. Ask your insurance provider about what is included and excluded in your policy. Insurance providers may also require additional endorsements like BYOB and assault and battery coverage to cover such risks.
Check Coverage Limits
Insurance policies have limits, which indicate how much the provider is willing to cover in a claim. A high limit allows you to cover all damages caused by multiple incidents without exceeding the cap. You can also choose higher limits if your bar is more vulnerable to high-profile cases, such as stocking premium alcohol. Compare the basic policy limits and determine if you need more coverage based on your establishment. Look for a policy that covers medical bills, property damage, settlements, and legal costs. Track your evolving needs to adjust the policy limit to reflect potential risks and coverage demands.
Review Laws and Requirements
The law requires bar, restaurant, and nightclub owners to purchase adequate liquor liability coverage for potential risks and damages inherent to these businesses. Choose policies that align with legal requirements in your area. Local regulations vary from state to state, so look for providers familiar with your local laws. Insurance providers may also impose specific requirements on their policies, such as training employees on responsible practices. The training enables employees to avoid risks, such as over-serving patrons or how to spot invalid IDs.
Speak to a Liquor Liability Insurance Company Today
Choosing a liquor liability policy requires carefully reviewing your business needs and risks. You can purchase individual policies, bundled plans, or additional endorsements. You can customize what coverages are ideal for your business and adjust them in the future. Contact a liquor liability insurance provider today to learn about policy selection and customization.